- Ethereum options’ open interest hit an all-time high on CME, suggesting interest from traditional investors.
- This move comes ahead of a potential approval of futures ETH ETF on October 2.
- The whale transaction metric also shows a spike on the recent dip, suggesting buying activity.
- Supplementing the bullish nature is the accumulation from holders with 10,000 to 100,000 ETH.
Ethereum (ETH) price is likely going to witness a massive spike in volatility soon due to the circumstances surrounding the approval of the token’s futures Exchange-Traded Fund (ETF). According to Twitter users, the ETF is likely going to be approved on October 2. So, a closer look at on-chain metrics reveal that whales and traditional investors are positioning themselves ahead of the potential ETF approval.
Read more: First Ethereum futures ETF expecting approval by October 2
Ethereum futures ETF approval and volatility spike
The chart attached below adds proof that investors positioning themselves ahead of the Ethereum futures ETF approval on October 2 is the open interest of ETH options on the CME exchange. The open interest has hit $352 million, which is and all-time high.
While this chart does not provide a directional bias, looking at other on-chain metrics does show signs that these investors are likely expeceting a bullish outcome.
ETH CME OI
Also read: SEC could approve multiple Ether ETFs soon while delaying Bitcoin spot ETFs
Santiment’s Supply Distribution by on balance of addresses shows that Ether whales holding between 100,000 to 1,000,000 ETH has grown from 19.1 million on August 19 to 20.19 million as of September 24. In total, these whales added 1.09 million ETH to their holdings.
This moves comes after Ethereum (ETH) price dropped nearly 15% between August 15 and 20, suggesting that it was a buy-the-dip accumulation.
 [14.30.54, 24 Sep, 2023]-638311529602349631.png)
ETH supply distribution by balance of addresses
Further supporting that these holders are preparing for an approval of Ether futures ETF is the whale transaction metric. This index tracks transactions worth $100,000 or more and serves as a proxy of investor sentiment. A spike in this on-chain metric after a dip, hints at accumulation and the opposite often indicates that these holders are looking to sell.
On September 12, when Ethereum (ETH) price dropped to $1,551, this index saw a major uptick, suggesting nothing but accumulation.
 [14.31.20, 24 Sep, 2023]-638311529820065968.png)
ETH whale transaction
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.